School of Accountancy, Business and Hospitality

Business Administration Department

Curriculum 2018-2019

COURSE LEARNING MODULE

OMGT 1013 (Operations Management and Total Quality Management)
AY 2022-2023

Lesson 15: Project Management Part 1

Topic: Project life cycle

Behavioural aspects of project management

Learning Outcomes: After reading this module, you are expected to:

 Identify the steps of the project life cycle and the behavioral aspects of project management.

LEARNING CONTENT

Introduction:

Managers typically oversee a variety of operations. Some of these involve routine, repetitive activities,
but others involve non-routine activities. Under the latter heading are projects; unique, one-time operations
designed to accomplish a set of objectives in a limited time frame. Other examples of projects include
constructing a shopping complex, merging two companies putting on a play, and designing and running a
political campaign. Examples of projects within business organizations include designing new products or
services, designing advertising campaigns, designing information systems, reengineering a process, designing
databases, software development, and designing Web pages.

Lesson Proper:

MANAGING PROJECTS
Managing Project is Important to:

1) Finance- which use project management techniques for financing new business acquisitions.
2) Human resources – which uses project management techniques for initiating new training and de-
velopment programs
3) Management Information System – which uses project management techniques for designing
new information systems to support reengineering process.
4) Marketing – which uses project management techniques to design execute new product advertis-
ing campaigns.
5) Operations – which uses project to design techniques to manage the introduction of new process
for the production of goods and services.

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 Projects may involve considerable cost. Some have a long time horizon, and some involve a large
number of activities that must be carefully planned and coordinated. Most are expected to be completed based
on time, cost, and performance targets. To accomplish this, goals must be established and priorities set. Tasks
must be identified and time estimates made. Resource requirements also must be projected and budgets
prepared. Once under way, progress must be monitored to assure that project goals and objectives will be
achieved.

The project approach enables an organization to focus attention and concentrate efforts on accomplishing a
narrow set of performance objectives within a limited time and budget framework. This can produce significant
benefits compared with other approaches that might be considered. Even so, projects present managers with a
host of problems that differ in many respects from those encountered with more routine activities. The
problems of planning and coordinating project activities can be formidable for large projects, which typically
have thousands of activities that must be carefully planned and monitored if the project is to proceed according
to schedule and at a reasonable cost.

Projects can have strategic importance for organizations. For example, good project management can be
instrumental in successfully implementing an enterprise resource planning (ERP) system or converting a
traditional operation to a lean operation. And good project management is very important when virtual teams
are used.

PROJECT LIFE CYCLE

The size, length, and scope of projects vary widely according to the nature and purpose of the project.
Nevertheless all projects have something in common: They go through a life cycle, which typically consists of
five phases.

1. Initiating. This begins the process by outlining the expected costs, benefits, and risks
associated with a project. It includes defining the major project goals and choosing a project manager

2. Planning. This phase provides details on deliverables, scope of the project, budget, schedule
and milestones, performance objectives, resources needed, a quality plan, and a plan for handling
risks. The accompanying documents generated in the planning phase will be used in the executing and
monitoring phases to guide activities and monitor progress. Members of the project team are chosen.

3. Executing. In this phase the actual work of the project is carried out. The project is managed
as activities are completed, resources are consumed, and milestones are reached. Management
involves what the Project Management Institute (www.pmi.org) refers to as the nine management
areas: project integration, scope, human resources, communications, time, risk, quality, cost, and
procurement.

4. Monitoring and Controlling. This phase occurs at the same time as project execution. It
involves comparing actual progress with planned progress and undertakes corrective action if needed,
and monitoring any corrective action to make sure it achieves the desired effect.

5. Closing. This phase ends the project. It involves handing off the project deliverables,
obtaining customer acceptance, documenting lessons learned, and releasing resources.

It should be noted that the phases can overlap, so that one phase may not be fully complete before the next
phase begins. This can reduce the time necessary to move through the life cycle, perhaps generating some

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competitive advantage and cost saving. Although subsequent decisions in an earlier phase may result in waste
for some portion of the activity in a following phase, careful coordination of activities can minimize that risk.

Figure 17.1 illustrates the phases in a project life cycle.

BEHAVIORAL ASPECTS OF PROJECT MANAGEMENT

Project management differs from management of more traditional activities mainly because of its limited
time framework and the unique set of activities involved, which gives rise to a cost of unique problems. This
section describes more fully the nature of projects and their behavioral implications. Special attention is given
to the role of the project manager.

The Nature of Projects

As projects go through their life cycle, a variety of skill requirements are involved. The circumstances
are analogous to constructing a house. Initially an idea is presented and its feasibility is assessed, then plans
must be drawn up and approved by the owner and possibly a town building commission or other regulatory
agency. Then a succession of activities occurs each with its own skill requirements, starting with the site
preparation, then laying the foundation, erecting the frame, roofing, constructing exterior walls, wiring and
plumbing, installing kitchen and bathroom fixtures and appliances, interior finishing work, and painting and
carpeting work. Similar sequences occur on large construction projects, in R&D work in the aerospace
industry, and in virtually every other instance where projects are being carried out.

Projects typically bring together people with diverse knowledge and skills, most of whom remain associated
with the project for less than its full life. Some people go' from project to project as their contributions become
needed, and others are “on loan,” either on a full-time or part-time basis, from their regular jobs. The latter is
usually the case when a special project exists within the framework of a more traditional organization.
However, some organizations are involved with projects on a regular basis, examples include consulting firms,
architects, writers and publishers, and construction firms. In those organizations, it is not uncommon 'for some
individuals to spend virtually all of their time on projects.

Some organizations use a matrix organization that allows them to integrate the activities of a variety of
specialists within a functional framework. For instance, they have certain people who prepare proposals, others
who concentrate exclusively on engineering, others who devote their efforts to marketing, and so on.

In a matrix organization functional and project managers share workers and facilities Project managers
negotiate with functional managers for people to work on a project. Those selected will be temporarily assigned

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to the project manager. However, they are still responsible to their functional manager. They may work part-
time or full-time on the project. When their work is done, they return to their functional department.

A matrix organization works quite well with people who can function with two managers. It can create synergy
when people from various functional areas are brought together to work on a project. However, some people
do not function well under such a. structure and may be stressed working in that environment. Matrix
organizations typically do not allow long-term working relationships to develop. Furthermore, using multiple
managers for one employee may result in uncertainty regarding employee evaluation and accountability.

Key Decisions in Project Management

Much of the success of projects depends on key managerial decisions over a sequence of steps;

1. Deciding which projects to implement.

2. Selecting the project manager.
3. Selecting the project team.
4. Planning and designing the project.
5. Managing and controlling project resources:
6. Deciding if and when a project should be terminated.

Deciding Which Projects to Implement. This involves determining the criteria that will be used to decide
which projects to pursue. Typical factors include budget, availability of appropriate knowledge and skill
personnel, and cost-benefit considerations. Of course, other factors may override these criteria, factors such
as availability of funds, safety issues, government-mandated actions, and so on.

Selecting the Project Manager. The project manager is the central person in the project. The following
section on project managers discusses this topic.

Selecting the Project Team. The team can greatly influence the ultimate success or failure of a project.
Important considerations include not only a person’s knowledge and skill base, but also how well the person
works with others (particularly those who have already been chosen for the project), enthusiasm for the project,
other projects the person is involved in, and how likely, those other projects might be to interfere with work on
this project.

Planning and Designing the Project. Project planning and design require decisions on project performance
goals, a timetable for project completion, the scope of the project, What work needs to be done, how it will be
done, if some portions will be outsourced, what resources will be needed, a budget, and when and how long
resources will be needed.

Managing and Controlling Project Resources. This involves managing personnel, equipment, and the
budget; establishing appropriate metrics for evaluating the project; monitoring progress; and taking corrective
action when needed. Also necessary are designing an information system and deciding what project
documents should be generated, their contents and format, when and by whom they will be needed, and how
often they should be updated. Deciding if and when a project should be terminated. Sometimes it is better to
terminate a project than to invest any more resources. Important considerations here are the likelihood of
success, termination costs, and whether resources could be better used elsewhere.

*** END of LESSON***

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WARNING: No part of this E-module/LMS Content can be reproduced, or transported or shared to others without
permission from the University. Unauthorized use of the materials, other than personal learning use, will be penalized.
Please be guided accordingly.

REFERENCES

Textbooks

Chase, Richard,et.al. Production and Operations management: Manufacturing and Services 8th ed.
Irwin/McGrwa-Hill. Boston

Stevenson, William J. (2018). Operations management thirteenth edition. McGraw Hill Education, 2 Penn
Plaza, New York, NY 10121.

Learning Materials

Worksheets (teacher-made)

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